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BabaBlast [244]
2 years ago
6

If the MPC is 0.80 and disposable income increases from 32,000 billion to $37,000 billion, then consumption will increase by: A.

$1,000 billion. B. $29,600 billion. C. $5,000 billion. D. $4,000 billion.
Business
1 answer:
horsena [70]2 years ago
8 0

If the MPC is 0.80 and disposable income increases from 32,000 billion to $37,000 billion, then consumption will increase by: B. $29,600 billion.

<h3>Increase in consumption</h3>

Using this formula=Increase in disposable income×MPC

Where:

Increase in disposable income=$37,000

MPC=0.80

Let plug in the formula

Increase in disposable income=$37,000 billion×0.80

Increase in disposable income=$37,000 billion×0.80

Increase in disposable income=$29,600 billion

Therefore consumption will increase by:  B. $29,600 billion.

Learn more about increase in consumption here:brainly.com/question/6955443

<h3 />
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"$1,750,000 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will b
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The question is incomplete. Here is the complete question.

The Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered. The estimated residual value of the property is $150,000. During the first year, the company extracted 6,500 tons of ore. The depletion expense is

Answer:

$26,000

Explanation:

Weber company purchases a mining site for $1,750,000

The company is expected to mine ore for a period of 10 years

A total of 400,000 tons is expected to be recovered

The estimated residual value of the property is $150,000

During the first year, the company extracts 6,500 tons

Therefore, the depletion expense can be calculated as follows

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3 years ago
A company issues $100,000 of 5%, 10-year bonds dated january 1. The bonds pay interest semiannually on june 30 and december 31 e
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Assuming  the bonds are sold at par value, the issuer will records the sale with a debit to: Cash $100,000.

<h3>Journal entry</h3>

Based on the information given if the company issues the amount of  $100,000 of 5%, 10-year bonds dated january 1 the appropriate journal entry to record this transaction is:

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Credit Bond payable $100,000

(To record bonds sold at par value)

Inconclusion the issuer will records the sale with a debit to: Cash $100,000.

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Answer:

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The risk free rate is 7.0

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